A Denver Homeowner's Net Worth is 45x Greater Than a Renter’s!

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A Denver Homeowner's Net Worth is 45x Greater Than a Renter’s!

Written by Marianne Bandy Posted On Tuesday, 02 August 2016 17:22

Homeowner equity is a substantial component of a homeowner’s wealth. The Federal Reserve’s Survey of Consumer Finances, conducted once every three years, collects data across all economic and social groups. It provides a snapshot of family income and net worth along with basic demographic details and more detailed information on where families keep the wealth they have accumulated.

Based on the latest survey that includes data from 2010-2013, reports that a homeowner’s net worth is 36 times greater than that of a renter ($194,500 vs. $5,400). As cited in a Forbes article, The National Association of Realtors’ (NAR) Chief Economist Lawrence Yun predicts that in 2016, the net worth gap will widen even further to 45 times greater.

This huge gap in net worth is due to the fact that every time a homeowner pays their mortgage, they are contributing to their own net worth. Conversely, every time a renter pays their rent, they are contributing to the net worth of their landlord. Lawrence Yun also said that though there will always be discussions about whether to buy or rent, the reality is that homeowners steadily build wealth and generally do come out ahead of renters in the long run.

In the past 15 years, the net worth of the typical homeowner has ranged between 31 and 46 times that of the net worth of the typical renter. A vast majority of homebuyers take out a 30-year fixed rate mortgage to make a home purchase. After 30 years, there is no mortgage payment (nor rent payment). So the home price growth over that time period would be the equity that the homebuyer would have accumulated.

Thinking of owning a home? Let the Bandy team help you with all your real estate needs! We will guide you through all phases of the home buying and home selling process in Denver. Our home purchasing experts can show you lovely homes in Stapleton, homes for sale in Denver Highlands, and help you with buying homes in other Denver areas such as real estate in Elizabeth. Contact us for a no-obligation consultation and our trusted professionals will be there to help you every step of the way!

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Until next time,

Marianne Bandy, Team Leader

The Bandy Team

Keller Williams Park Meadows

BandyTeam.com - Denver Real Estate & Homes

720-466-3790

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Marianne Bandy

Marianne is a professional LDS Realtor in Denver with outstanding integrity, who takes the time to understand your specific housing and family needs. She is the team leader of one of the top selling Real Estate Teams in her broker's office. She understands that a big part of your family's happiness depends on the home and community where you live. LDS Realtor in Denver Colorado

One of Marianne’s greatest passions is helping people with their Real Estate transactions, typically one of the largest financial transactions they will undertake. Marianne is the listing agent for the team but also loves working with Latter Day Saint home buyers as well. Marianne uses her expertise and market knowledge so that her clients get the most accurate and up to date information possible. Marianne has a breadth of experience working with clients through all aspects of closing on a home. When listing homes for sale, this includes readying the home for sale, developing a marketing strategy, getting feedback on showings, negotiating inspection items, and many other details that lead up to a successful closing.

Marianne is excellent at contract negotiations and looking out for the best interests of her clients. She has obtained the Certified Negotiation Expert (CNE) certification. When helping Buyers, she loves the feeling of helping families connect with the right home in the right community. She also has knowledge of ward and stake boundaries, meeting house locations, youth programs, drive time to the LDS Denver temple, and seminary locations for your high school children.

If you’re looking for solid results and a WOW! experience, then call Marianne and put her to work for you. In the last two years, the Bandy Team sold 125 homes. The Bandy Team has the experience and proven systems you need to make your transaction as smooth and worry-free as possible.

The Bandy Team is committed to conducting business with the utmost integrity. The team was formed on the principles of honesty and loyalty with clients. Marianne believes in surrounding herself with good people that share her values. This includes good business partners that can aid in all aspects of a real estate transaction, including home inspections, loans, transaction coordination, home repairs, etc. Marianne and her entire team are committed to the highest levels of customer service for their clients.

Who you work with Matters!

LDS Real Estate Agent in Denver Colorado

www.BandyHomes.com

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